Tens of thousands of unpaid carers affected by confusing guidance on their earnings are set to have their debts reduced, cancelled, or refunded, in a major reassessment of cases launched by the government.
- Over 200,000 Carer's Allowance cases affected by confusing guidance will be reviewed, with debts potentially reduced, cancelled or refunded for around 25,000 unpaid carers.
- Unclear government guidance on fluctuating earnings, in place from 2015 to 2025, left busy carers facing unexpected debts without realising they had broken the rules.
- Carers do not need to take any action now as this government steps in to put right the failures in the system it inherited.
Tens of thousands of unpaid carers affected by confusing guidance on their earnings are set to have their debts reduced, cancelled, or refunded, in a major reassessment of cases launched by the government.
The move follows ministers' acceptance of 38 of the 40 recommendations made by the independent Sayce Review into Carer's Allowance overpayments in November 2025.
From April 2015 to September 2025, guidance on how to average irregularly fluctuating earnings was unclear and did not accurately reflect the law.
Carers juggling paid work alongside at least 35 hours of unpaid caring built up debts without realising they had exceeded the weekly earnings limit. That was a failure of the system, and this government is taking action to put it right.
The DWP will now review over 200,000 cases. Around 25,000 carers could see their debts reduced, cancelled entirely, or receive refunds where money has already been repaid. In most cases, DWP holds all the information it needs. Carers do not need to contact DWP - the department will
